RF Industries (RFIL) Q4 2025 earnings summary

Executive summary

• Net sales for Q4 2025 grew 23% year-over-year to $22.7 million, with full-year sales up 24% to $80.6 million compared to fiscal 2024, and Q4 sales rose 15% sequentially from Q3 2025.

• Gross profit margin reached 37% in Q4 and 33% for the year, both exceeding prior year levels and internal targets.

• Adjusted EBITDA was 11.5% of net sales in Q4 and $6.1 million for the year, a significant increase from $838,000 in fiscal 2024.

• Operating income for Q4 was $903,000, up from $96,000 last year; full-year operating income was $1.8 million, reversing a $2.8 million loss in fiscal 2024.

• Strategic transformation from a component supplier to a technology solutions provider drove diversification and reduced customer concentration risk.

Financial highlights

• Q4 gross profit margin improved to 37%, up 600 basis points year-over-year; full-year margin was 33%, up 400 basis points.

• Q4 operating income was $903,000, up from $96,000 last year; consolidated net income was $174,000 ($0.02 per share), with non-GAAP net income at $2.1 million ($0.20 per share).

• Full-year consolidated net income was $75,000 ($0.01 per share), with non-GAAP net income at $4.4 million ($0.40 per share), compared to a $6.6 million loss last year.

• Working capital stood at $14.1 million, current ratio at 1.7, and cash/cash equivalents at $5.1 million as of October 31, 2025.

• Inventory decreased 7% year-over-year to $13.7 million due to improved procurement and supply chain processes.

Outlook and guidance

• Fiscal 2026 is expected to deliver another year of sales growth and profitability, with Q1 anticipated as the seasonal low and acceleration expected throughout the year.

• Management aims to continue momentum into FY2026, focusing on diversifying end markets, launching new products, and driving further customer and market penetration.

• No specific quantitative guidance provided, but management expects a growth trajectory similar to fiscal 2025.

• Profitability focus remains on maintaining EBITDA above the 10% target, despite ongoing cost pressures.